B. Riley Financial, Inc. (RILY) announced on Monday a series of strategic and financing initiatives. Key among these are negotiations to sell a majority stake in Great American Group, valued at an enterprise worth of $380 million, and the financing of its Brands Portfolio, estimated at $236 million.On the Nasdaq, B. Riley shares experienced a notable increase, rising about 10.22 percent to $5.93.The company revealed it is in exclusive negotiations with a global asset manager to sell a 53% stake in its Appraisal and Valuation Services, Real Estate, and Retail, Wholesale & Industrial Solutions businesses, collectively named Great American Group. The proposed deal values this business at an approximate total enterprise value of $380 million.Additionally, B. Riley entered into a non-binding agreement for debt financing concerning the B. Riley and bebe brands businesses. This debt financing is anticipated to occur via a special purpose vehicle secured by brand assets and will be non-recourse to B. Riley.If finalized, the transaction is expected to generate about $236 million in proceeds, which the company plans to utilize for paying down its senior secured debt. B. Riley acquired the brand portfolio, excluding bebe and Brookstone, for approximately $222 million and has received $179 million in distributions.The company emphasized that both proposed deals are contingent on the successful completion of due diligence, and the negotiation and execution of definitive agreements. There is no guarantee that any agreements will be finalized or that the transactions will be completed, it cautioned.B. Riley anticipates that these initiatives, if realized, will strengthen its balance sheet, thereby enhancing its ability to focus on and invest in its core operating subsidiaries.The company intends to use the funds from the potential brand asset refinancing, along with the proceeds from the possible partial sale of Great American Group, to lower the outstanding debt under its Nomura Senior Secured Credit Agreement to roughly $125 million by the close of 2024.Furthermore, B. Riley plans to use available cash, supplemented by proceeds from other asset sales, to repay its outstanding February 2025 Senior Notes.The material has been provided by InstaForex Company – www.instaforex.com
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